The Michigan Department of Insurance and Financial Services increased the maximum amount of Michigan wage loss benefits payable under the Michigan no-fault law. Beginning October 1, 2015, the monthly maximum a car insurance company is obligated to pay per 30-day period is $5,398. This amount is for Michigan auto accidents that occur between October 1, 2015 to September 30, 2016.
Each year, the Department of Insurance adjusts the maximum work loss benefit to reflect changes in the cost of living. Last year, or more specifically for auto accidents occurring between October 1, 2014 to September 30, 2015, the monthly maximum was $5,392.
As you can notice, the increase was very marginal. A whopping $6, or a .11% increase. Although interest rates are very low right now, this seems like a very small increase even when considering current economic conditions. The inflation rate over the past year was around 1%, with many goods and services increasing by more than 1%. What ever the case may be, we are stuck with this increase.
As a reminder, under the Michigan no-fault law auto insurance companies are responsible for paying various no-fault benefits to a claimant for injuries related to the accident. This includes wage loss benefits. Wage loss benefits include the payment of 85% of gross wages for up to 3 years from the date of the accident to individuals who were employed (or temporally unemployed) at the time of the accident and disabled from work due to their car accident injuries.
For example, if you were earning $1,000 per week at the time of the car accident, and could not work because of injuries sustained in the accident, the car insurance company would be responsible for paying $850 per week in wage loss benefits.
If you have a question about a Michigan car accident case, please contact the Michigan car accident lawyers at the Lee Steinberg Law Firm, P.C. at 1-800-LEE-FREE or 1-800-533-3733. The call is free and there is no fee unless we win your case.